HC Tech & Distribution – 2Q26 Earnings Preview

Research evidence excerpt

HC Tech & Distribution – 2Q26 Earnings Preview

out of 1Q who confirmed their performance was indicative of

Bullish into 2Q26 based on mgmt commentary out of 1Q26 earnings in mid-June.

selling more FSO business and that 2-3 quarters of 1.2x-1.3x B2B would point to

ICLR RFP flow should sustain DD growth and win-rates seem durable pointing to

acceleration in organic growth in 2027. "Q2 is looking like a very strong quarter

potential share gain. We expect slightly higher (normalized) cancellations.

for signings"

Bullish into 2Q26 despite the recent run up in share price given demand Mgmt sounded bullish at their lunch in early June, highlighting demand strength

CRL inflection, potential competitive share gains and potential for outperformance on from biotech funding returning with proposal volumes at 9 quarter highs. Margin

margin improvements in 2026, which should all take center stage in 2Q report. uplift path for 2026 is clear.

We are constructive into the quarter believing it will look similar to 1Q26 with Mgmt sounded consistent from 1Q26 with strong demand signals in both

IQV strong bookings that could be impacted by higher pass throughs evident by our segments, pointing to continued drug approvals as main driver of Commercial.

1.08x B2B. We expect another strong quarter on the commercial side. They did not sound confident in heightened pass throughs subsiding in 2Q26.

Cautious into 2Q26 given tone on underlying demand and persistent Mgmt sounded cautious in late June and didn't talk up backlog growth or

MEDP cancellations. Talking up strategic initiatives to increase win rate which likely improving cancellations. Win rate improvements focus on hitting customers

needs lead time before any potential contributions to backlog growth they've been missing.